KWASA DAMANSARA, 21 October 2024: The Employees Provident Fund (EPF) is pleased that the Budget 2025, announced by YAB Prime Minister Dato’ Seri Anwar Ibrahim on 18 October 2024, supports the reform agenda to build an inclusive and prosperous nation that prioritises wellbeing across all segments of society.

Increased Government Incentives for i-Saraan and Broader i-Suri Coverage
In line with the people-centered economy emphasised in the Ekonomi MADANI framework, the EPF welcomes the Government’s approval to enhance the i-Saraan programme by increasing the matching incentive from 15% to 20%, subject to a maximum of RM500 per year and a lifetime limit of RM5,000 per individual.

This enhancement, effective from 1 January 2025, will benefit more than 330,000 existing and new i-Saraan participants. In the first half of 2024, i-Saraan recorded total contributions of RM1.61 billion from 330,196 members, an increase of 103% from RM789.3 million, and a 56% rise in the number of members from 211,361 in the same period of 2023.

In addition, as an appreciation for the contributions of housewives to the development of families and the nation, the Government’s matching incentive for the i-Suri programme of 50% of the total annual contribution will be extended for the year 2025. The incentive is subject to a maximum matching limit of RM300 per year and RM3,000 for a lifetime, or until reaching the age of 55, whichever comes earlier. Launched in 2018, i-Suri encourages housewives registered in the e-Kasih database to save for their future financial security.

EPF Chief Executive Officer Encik Ahmad Zulqarnain Onn said, “The enhancement to i- Saraan and the continuation of the i-Suri programme underscores the Government’s strong commitment to bolstering the retirement income security of Malaysians, ensuring that the long- term welfare of all Malaysians is safeguarded.

“By addressing the needs of various segments of society, including youth, working adults, women, and senior citizens, the Government is laying the foundation for a more equitable and resilient future. The EPF fully supports this approach as it aligns with its purpose to build a better retirement future for Malaysians,” he added.

Intergenerational Transfer Mechanism to Allow Direct Transfers into EPF Account
Budget 2025 also announced that the EPF will review its scheme to allow for inter- generational transfer of savings by members to their family members. This will allow members additional flexibility in planning for their retirement and the financial well-being of their families.

Extending EPF Mandatory Coverage to Non-Malaysian Workers for Fairness and Economic Competitiveness
The announcement to expand EPF mandatory coverage to non-Malaysian workers fully aligns with EPF’s broader effort to ensure that all workers, regardless of nationality, have access to social protection.

Ahmad Zulqarnain said, “This initiative will promote greater fairness in the labour market by ensuring social protection for all workers, regardless of nationality, in line with international standards.”

Currently, non-Malaysian workers can voluntarily opt to contribute to the EPF. The new policy is expected to benefit over two million non-Malaysian workers in Malaysia.

The EPF will provide further updates on the details of contribution rates, key target groups and policy implementation mechanism in due course.

Issued by
Editorial and Media Relations Unit
Corporate Affairs Department
21 October 2024